Import GST recording presents a situation where you may need to post a document where the entire amount must be treated as GST. For example, this is necessary, if you receive a GST invoice from the tax authorities for imported goods.
Example
For example, a company imports goods and posts a purchase invoice (without GST) for LCY 100,000.00. This purchase invoice is posted in the normal way, and the relevant line in the GST posting setup specifies a GST% of 0. Later, the company receives a GST invoice from the tax authorities. The GST invoice shows a calculated import GST amount of 25% of the invoice amount = LCY 25,000.00. When the company pays this GST invoice, it must be possible to create a GST ledger entry where the GST base is 0 and the GST amount is LCY 25,000.00.
Setting up the G/L GST Account and GST Posting Setup
To record the import GST, you must set up a new G/L GST account, a GST Product Posting Group, and a corresponding line in the GST Posting Setup for this purpose. For more information on setting up codes for Import GST, see How to: Set Up Codes for Import GST.
Posting the Import GST using Journals and Invoices
To post the Import GST invoice in the example, you can use a journal or a purchase invoice.
For more information on posting the Import GST invoice, see How to: Post Import GST and How to: Post Import GST with Purchase Invoices.